Commission launches digital tax consultation

The Commission has been tasked with bringing forward proposals on digital taxation in early 2018, following discussions at the European Council.

27.10.2017

The
European Commission has launched a public consultation on how to best
raise
taxes on digital companies, like Amazon and Google.

The
Commission has been tasked with bringing forward proposals on digital
taxation in early 2018, following discussions at the European
Council.

"Nobody
can deny it: our tax framework does not fit anymore with the
development of the digital economy or with new business models,”
Pierre Moscovici, Commissioner for Economic and Financial Affairs,
Taxation and Customs, said.

"Member
states want to tax the huge profits generated by digital economic
activity in their country. We need a solution at EU level, bringing
robust solutions for businesses and investors in the single market."

The
Commission said it wants to ensure the digital economy is taxed in a "fair and growth-friendly way".

The public consultation, which will run until January 3 2018, is intended to gather views on the main problems relating to taxing the digital economy for countries and businesses, as well as possible solutions.

The Commission's preferred option is to change the way digital companies are taxed
through its broader Common Consolidated Corporate Tax Base (CCCTB)
proposal, which would use the firm's assets, labour and sales to
calculate where its value is created, and tax the firm accordingly.